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TIB Research Where do political parties get so much money from?

For a political party with a full-fledged organizational structure extending down to the union level, the annual cost of maintaining offices and conducting programs...
HomeBangladeshTIB Research Where do political parties get so much money from?

TIB Research Where do political parties get so much money from?

For a political party with a full-fledged organizational structure extending down to the union level, the annual cost of maintaining offices and conducting programs could range from 302 to 393 crore taka.

If the party’s branches extend further down to the ward level, the potential annual expenditure could reach between 1,532 and 2,188 crore taka. Yet, only a small fraction of these costs can be covered through membership fees. Furthermore, there is a significant gap between these estimated costs and the income-expenditure figures publicly disclosed by the parties themselves.

Transparency International Bangladesh (TIB) has highlighted this reality regarding political party financing in a recent study.

The research report was unveiled on Sunday at a press conference held at TIB’s office in Dhanmondi, Dhaka. It examines various aspects of political parties, including their financing, internal democracy, leadership selection, candidate nomination processes, and the prevention of irregularities and corruption.

The report, titled “Institutional Good Governance in Political Parties of Bangladesh,” notes that the heavy reliance on individuals and informal sources for funding has made political parties increasingly dependent on businesspeople and the wealthy.

Consequently, this has fostered a culture of politics centered around specific individuals and families. At the same time, there is a profound lack of transparency, accountability, democratic practice, and inclusivity within the institutional operations of these political parties.

Organizational costs exceed a thousand crore taka

Based on data obtained from political parties, the study estimates the potential costs of maintaining an organizational structure. It indicates that for a party to meet the Election Commission’s registration requirements—which include maintaining offices and conducting activities in at least 22 districts and 101 upazilas—it could incur an annual expenditure of approximately 14 to 20 crore taka.

On the other hand, if a party’s operations extend across all districts, metropolitan areas, upazilas, municipalities, and unions, the potential annual expenditure would reach 302 to 393 crore taka. If the organizational network expands further to the ward level, these costs could climb to between 1,532 and 2,188 crore taka.

Against such massive expenditures, the potential income generated from membership fees remains significantly lower. The research indicates that, given an organizational structure extending down to the ward level, the potential revenue from membership dues amounts to 1.16 billion BDT (116 crore taka). This suggests that political parties cannot rely solely on membership dues to fund their organizational activities. Consequently, questions have arisen regarding other sources of funding for these parties and the transparency of their financial management.

Patronage from Businesspeople and the Wealthy

According to the TIB (Transparency International Bangladesh) study, the existing framework for the registration and operation of political parties fosters a system of competitive patronage. As a result, parties are compelled to depend on the support of businesspeople and affluent individuals to sustain their operations.

The research report identifies the heavy reliance on specific individuals for political financing—along with a predominance of informal funding sources—as a major impediment to the internal governance of these parties. It further notes that this dynamic creates fertile ground for the abuse of power, the influence of ‘black money’ (illicit funds), the criminalization of politics, and internal factional conflicts within influential political parties.

At a press conference, TIB Executive Director Dr. Iftekharuzzaman stated that because everything from the registration of political parties and the conduct of their activities to their participation in elections has become heavily dependent on money, these parties have grown reliant on businesspeople and the wealthy.

This reliance on individuals for political financing—characterized by a lack of formal structure—has fostered the abuse of power, the influence of ‘black money,’ the criminalization of politics, and internal conflicts within influential parties, effectively transforming them into power-centric business models.

**Lack of Financial Policies and Non-Disclosure of Accounts**

The research reveals that some political parties lack clear financial policies or operational procedures. Their constitutions contain vague guidelines regarding membership dues (which vary by position), conditions for accepting donations, nomination form fees, the maintenance of accounts, financial transactions, procurement, auditing, and financial accountability.

Furthermore, these parties do not prepare regular annual budgets. Neither the parties themselves nor the Election Commission publishes audited reports of their actual annual income and expenditure. Consequently, the general public has limited opportunity to learn about the true sources of these parties’ funds, the methods used to collect them, or how the money is spent.

**Election of Leaders via Voice Vote**

There is also a significant deficit in the practice of internal democracy within these parties. The research indicates that while most parties elect their leaders through a national council, they do so via voice vote rather than by secret ballot. The practice of accepting multiple nominations for the position of party chief is virtually non-existent; only two parties were found to have had multiple candidates for such roles.

Among the 10 political parties covered in the study, there are instances of family-centric leadership. In 12 parties, the same individuals have held the position of party chief for 10 years or longer. Most party constitutions do not specify limits on how many times or for how many terms an individual may serve as party leader. Although formal decision-making structures exist, in practice, the decision-making process is often driven by specific individuals.

Additionally, the constitutions of three parties fail to specify the tenure of their central committees, while one party’s constitution lacks any provision regarding the process for forming its committee. National councils in 16 of the parties are held irregularly, and these councils typically serve merely to approve decisions that have already been predetermined. The Influence of Money and Power in Nominations

Transparency International Bangladesh (TIB) has identified a lack of transparency in the process of nominating candidates for elections. The constitutions of most political parties fail to clearly define the criteria for candidate eligibility or disqualification. While some party constitutions mention attributes like popularity, integrity, and loyalty to the party, these terms lack precise definitions.

The research reveals that influential political parties often prioritize wealth, influence, and business backgrounds when selecting candidates. Allegations of “nomination trading”—the exchange of money for candidacy—have also surfaced within three major political parties. The research team noted a significant presence of businesspeople among candidates and elected Members of Parliament across the last five national parliamentary elections.

12-Point Recommendations

To ensure good governance within the institutional operations of political parties, TIB has proposed 12 recommendations. These include necessary amendments to the Representation of the People Order (RPO), 1972, and its associated 2008 rules; bringing political parties under the purview of the Right to Information Act; and enhancing the Election Commission’s role in auditing party finances and overseeing their organizational activities.

Furthermore, the recommendations include auditing the financial transactions of political parties through chartered accountancy firms registered with the Election Commission, holding regular party councils, electing leadership at all levels via secret ballot, and establishing term limits for individuals holding leadership positions, including the party chief. The report also emphasizes ensuring the participation of women and marginalized groups in party leadership and the candidate nomination process.

Dr. Iftekharuzzaman stated that internal reform is essential to ensure good governance within political parties—a task that must be undertaken by the parties themselves. To secure a democratic future and earn the public’s trust, political parties must seriously consider implementing fundamental reforms.

The study involved 42 political parties, comprising 37 registered and five unregistered entities. Of these, 32 parties provided data to the researchers. The scope of the research covers the period from the inception of the political party registration process in 2008 through December 2025. In some cases, information updated as late as August 2026 has also been used.